Latin American markets are mostly lower in late trade, hurt by weekend data out of China showing inflation at a 10-month high during February while factory output and consumer spending were weaker than forecast. A downgrade in Italy's credit rating by Fitch has also been keeping a lid on equities globally.
Here's where the regional markets stand today:
- Ibovespa was down 560.32. Now down around 400 (-0.7%) to 58,031.5.
- IPC (Mexico City) down 361.56 (-0.82%) to 43,960.95
- Santiago Index IPSA up 2.91 (+0.06%) to 4,531.
- Merval Buenos Aires was down 5.29. Now up 7.94 (+0.24%) to 3,332.8.
In company news, ADRs of Brazilian miner Vale SA ( VALE ) are down about 1.4% today following reports it may soon cancel a $5.9-bln potash project in Argentina after failing to gain tax breaks from the Argentine government, according to a report in City A.M., citing the Folha de S. Paulo newspaper. Without tax breaks, the cost of the system could spike 86% to $11 bln.
Also today, U.S.-listed shares of Petroleo Brasileiro SA ( PBR ), also known as Petrobras, are down about 1.5% this afternoon with TheStreet Ratings today reiterating the stock as a Hold. The new research note cites several strengths, including recent gains in net income and an attractive valuation as well as EPS growth. On the negative side, however, TheStreet also found a disappointing return on equity, weak operating cash flow and poor profit margins.
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